RAMP nr-L.23i 131O Ile
REPORT ON PROJECT FINANCIAL STATEMENTS
OF THE NATIONAL AGENCY FOR FISCAL ADMINISTRATION
LOAN (8261-RO) FOR THE REVENUE ADMINISTRATION MODERNIZATION
PROJECT (RAMP)
FOR THE YEAR ENDED 31 DECEMBER 2017
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
NO. CONTENTS PAGE
Auditor's report on the project financial statements 3
List of abbreviations 6
General information 7
1. Statement of sources and uses of funds 11
2. Statements of expenditures 12
3. Summary of statement of expenditures 15
4. Financial statement of the loan 15
5. Budget realization 16
6. Project commitments 16
7. Accounting policies and records 22
8. Statement of treasury account 23
9-11 Notes to the project financial statements 23
2
INDEPENDENT AUDITOR'S REPORT
TO THE NATIONAL AGENCY FOR FISCAL
ADMINISTRATION - PROJECT MANAGEMENT UNIT
- REVENUE ADMINISTRATION MODERNIZATION
PROJECT - RAMP
Report on the Project Financial Statements
Unqualified Opinion
We have audited the accompanying project financial statements of Revenue Administration
Modernization Project for the year ended 31 December 2017. The project is financed by the
International Bank for Reconstruction and Development (IBRD) through Loan no. 8261 -
RO that was signed on 8 May 2013. The audited project financial statements for the year
ended 31 December 2017 consist of: Statement of resources and uses of funds, Statements of
expenditures, Statement of SoE, Financial statement of the loan, Budget realisation,
Statement of the Treasury Account.
2. In our opinion, the financial statements of the Project: Revenue Administration
Modernization Project -RAMP for period 01 s' of January 2017 until 31s' December 2017 are
prepared, in all material respects, in accordance with the financial reporting provisions
provided in Law no 212/27.06.2013 and the Loan Agrement 8216-RO of May 8, 2013.
Basis fr Opinion
3. We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor's Responsibilities
for the Audit of the Financial Statements section of our report. We are independent of the
PMU according to the ethical requirement relevant for the audit of financial statement in
Romania and we have fulfilled all other ethical responsabilities, according to the
requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Emphasis of matters
4. Without qualifying our opinion, we draw attention to the following matters:
a) As mentioned in the Note 9 "Legislation and the fiscal environment in Romania "to the
financial statements, the legal system from Romania is affected by macroeconomic
factors which include influences of the worldwide economic slowdown. As a result of
this, the Romanian Government might change the fiscal and monetary policy. Due to the
above mentioned aspects there might be a negative impact on the evolution of the Project.
b) As mentioned in the Note 7 "Accounting policies and records" to the Project Financial
Statements, these financial statements were prepared for complying with the Loan
3
requirements and with the appropriate World Bank guidelines, and therefore are not
intended to be a complete presentation of the Project's operations
Management's Responsibility for the Financial Statements
5. Management of the Project Management Unit is responsible for the preparation of these
financial statements in accordance with the financial reporting provisions included in the
ratification law no 212/27.06.2013 and loan agreement 8261-RO dated 8 May 2013, and for
such internal control as management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
6. In preparing the financial statements, management is responsible for evaluating the Project's
ability to continue as a going concern, for disclosure, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends
to cease the Project or the operations, or has no realistic alternative but to do so. Those
charged with governance are responsible for overseeing the PMU's financial reporting
process.
Auditor's Responsibility for the Audit of Financial Statements
7. Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or aggregated, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
8. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
* Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
* Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the PMU's internal control.
* Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
* Conclude on the appropriateness of management's use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt
4
on the PMU's ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor's
report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's report. However, future events or
conditions may cause the PMU to cease to continue as a going concern.
* Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
9. We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
Other Matter
10. This report, including the opinion, has been prepared for the use of the Project Management
Unit and submission to the International Bank for Reconstruction and Development and
should not be used for any other purposes beside those meant for a financial audit report.
Within the boundaries of the law, we do not, in giving this opinion, accept or assume
responsibility for any other purposes or to any other person to whose knowledge this report
may come to.
Auditor:
MICHALIS PAPADOURIS vi R nonA
CAFR member (authorization no.4276/Z012),
for:
BAKER TILLY KLITOU AND PARTNERS S.R.L.
CAFR company member (authorization no. 384/26.05.2003)
Bucharest, 31 May 2018
5
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
List of abbreviations:
RAMP - Revenue Administration Modernization Project
IBRD - International Bank for Reconstruction and Development
WB - World Bank
NAFA - National Agency for Fiscal Administration
NAFA P.M.U. - Project Management Unit, established within NAFA
MOPF - Ministry of Public Finances
6
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
GENERAL INFORMATION
Reporting entity
The Loan Agreement is implemented by NAFA by means of the NAFA P.M.U. within the entity.
Loan Agreement
The Law no. 212 dated June 2013, ratified the Loan Agreement between Romania (the
"Borrower) and the International Bank for Reconstruction and Development (the "Bank")
regarding Revenue Administration Modernization Project, and by Government decision no.
1017/2016 the amendment of extension with 2 years of the project period from 31 march
2019 to 31 march 2021.
The development objectives of the Revenue Administration Modernization Project (RAMP) are:
(i) to increase effectiveness and efficiency in collection of taxes and social contributions;
(ii) to increase tax compliance;
(iii) to reduce the burden on taxpayers to comply.
The Minister of Public Finance attended the April 20-21, 2018 Spring World Meeting of the
World Bank Group and the International Monetary Fund in Washington, USA. During the
discussion, the current portfolio of on going projects financed by the Bank in Romania, including
the 826 1-RO Loan Agreement on ANAF Modernization, and the continuation of this Project in a
restructured form were analyzed. According to the address transmitted by the World Bank
(NAFA registration no. RAMP 9660/14.05.2018), the Bank's representatives will perform a visit
to Romania in the period 5-8 June, 2018 for this restructuring
Destination of Borrowed Funds
Component 1: Institutional Development
Component 2: Increasing Operational Effectiveness and Efficiency
Component 3: Taxpayer Services and Corporate Communication
Component 4: Project Coordination and Management
The loan amount for RAMP Project is allocated as follows:
Category Amount of the Percentage of
Loan Allocated Expenditures to
(expressed in be financed
Euro) (inclusive of
Taxes)
70,000,000 100%
(1) Goods, non-consulting services, Consultants'
services, including audit, Training and operating
costs of the Project
TOTAL AMOUNT 70,000,000
7
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
For the purposes of this Schedule:
* "Goods" means the goods described in the Procurement Guidelines, including
commodities, raw material, machinery, equipment, vehicles, and industrial plant;
* "Non-Consultant Services" means the non-consultant services described in the
Procurement Guidelines, including the non-consulting services for which the physical aspects
of the activity predominate, are bid and contracted on the basis of performance of a
measurable physical output, and for which performance standards can be clearly identified
and consistently applied;
* "Consultants" means the consultants described in the Consultant Guidelines,
including a variety of private and public entities such as consulting firms, engineering firms,
management firms, auditors, multinational organizations, investment and merchant banks,
universities, research institutions, government agencies, nongovernmental organizations
(NGOs), and individuals;
* "Training" means the training and training-related activities, including seminars,
workshops and study tours, travel and subsistence allowances for training participants,
trainers' fees, rental of training facilities, preparation and reproduction of training materials
and other activities incidental to the preparation and implementation of training activities;
* "Operating Costs" means the incremental expenses incurred by the Borrower on
account of Project implementation, management, and monitoring, for office space rental,
utilities, and supplies, bank charges, communications, vehicle operation, maintenance, and
insurance, building and equipment maintenance, advertising expenses, translation, travel and
supervision (including supervision activities in connection with the Project, salaries of
contractual and temporary staff, but excluding salaries, fees, and bonuses of members of the
Borrower's civil service).
Other information
The term "Statement of Expenditures" means: expense reports used by the Borrower to forward
to IBRD the application for reimbursement of payments already made.
The term "State treasury account" means: a bank account opened at the State Treasury where
NAFA is receiving from the Ministry of Public Finances the requested amount necessary for
payments of the eligible expenses.
The eligible expenditures of the project financed through loan provided by IBRD will be pre-
financed out of the State budget allocations.
The IBRD loan funds will be disbursed using the reimbursement as disbursing method.
Withdrawal applications will be sent to the Bank periodically by the Borrower (MOPF),
according to Disbursement Letter.
8
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
The withdrawn amounts will be used by MOPF for legal purposes, according to the legislation in
force regarding the Public Debt Law.
The amount necessary for the reimbursement of Loan, of the interest and commissions, is
provided by MOPF from the state budget.
Procurement plan prepared by the PMU is updated at least annually and is prior reviewed by the
EBRD.
9
GOVERNMENT OF ROMANIA
MINISTRY OF PUBLIC FINANCE
NATIONAL AGENCY FOR FISCAL ADMINISTRATION
IBRD LOAN (8261-RO)
FOR REVENUE ADMINISTRATION MODERNIZATION PROJECT - RAMP
Special purpose project's financial statements
for the year ended 31 December 2017
10
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
1. STATEMENT OF SOURCES AND USES OF FUNDS
1.1 Statement of the IBRD Loan Account for the Revenue Administration Modernization
Project - RAMP as at 31 December 2017
Loan No 8261 - RO
Date of Approval 8 May 2013
Cumulative as Cumulative as
at 31 Dec 2016 at 31 Dec 2017
EUR EUR
Loan amount approved 70,000,000.00 70,000,000.00
Less: Total drawings from loan 14,097,250.11 16,692,654.54
Loan amount not disbursed 55,902,749.89 53,307,345.46
1.2 Summary of Funds Received and Uses of Funds as at 31 December 2017
Cumulative as Fiscal Year Cumulative as
at 31 Dec 2016 2017 at 31 Dec 2017
RON RON RON
Opening cash balance 0.00 0.00 0.00
State Treasury Account transactions
Add: Pre-financing by the 65,353,462.65 12,001,835.50 77,355,298.15
Government
Less: Project expenditure 65,353,462.65 12,001,835.50 77,355,298.15
Closing cash balance 0.00 0.00 0.00
11
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
2. STATEMENT OF EXPENDITURES
2.1 Project expenditure by component
Expenditures for
Cumulative the year ended Cumulative
as at 31 Dec as at 31 Dec as at 31 Dec
Component/ Description 2016 2017 2017
RON RON RON
Component 1: Institutional Development 7,184,737.10 5,245,766.19 12,430,503.29
SC1: Organizational Development 4,861,631.72 3,262,539.73 8,124,171.45
RAMP/CS/2 Development of NAFA's Analytical
Capacity 1,909,334.57 0.00 1,909,334.57
RAMP/CS/3 Organizational Development:
Management Systems 858,580.95 0.00 858,580.95
RAMP/7 Modeling SW licenses 110,724.00 0.00 110,724.00
RAMP/13 Logistics for training (Year 2016) 1,982,992.20 209,300.58 2,192,292.78
RAMP/14 Logistics for training (Year 2017) 3,053,239.15 3,053,239.15
SC2: Internal Control & Public Audit 378,573.33 283,342.06 661,915.39
RAMP/CS/4 Development of internal control
functions 378,573.33 283,342.06 661,915.39
SC3: Human Resources & Training 905,993.70 1,244,733.20 2,150,726.90
RAMP/CS/5 Policy and strategy development for
HR 905,993.70 1,244,733.20 2,150,726.90
SC4: Legal Framework & Appeals 1,038,538.35 455,151.20 1,493,689.55
RAMP/23 Training for Fiscal Procedural Code 837,597.17 0.00 837,597.17
RAMP/CS/6 Improved Appeals Process and Review
of Legislation and Rulings Development 200,941.18 0.00 200,941.18
RAMP/CS/8 Training for Penal Code 241,320.10 241,320.10
RAMP/CS/9 Training for Civil Code 213,831.10 213,831.10
SC5: Business Process Re-engineering
Component 2: Increasing Operational Effectiveness
and Efficiency 46,500,063.99 5,003,899.84 51.503.963,83
SCl: Operational functions 5,755,294.22 1,164,131.23 6.919.425,45
RAMP/CS/10 Audit development and Audit
techniques improvement 1,853,937.11 0.00 1,853,937.11
RAMP/CS/14 Review of High Volume Revenue
Processing Operations 1,040,897.11 0.00 1,040,897.11
RAMP/CS/ 11 - Operational assistance for
Management of High Net Worth Individuals 666,370.59 0.00 666,370.59
RAMP/CS/13 - Enforcement Development 363,052.14 0.00 363,052.14
12
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
RAMP/CS/12 - Anti-fraud and Business Intelligence
Development 1,711,120.44 495,455.19 2,206,575,63
RAMP/CS/24 Specialized Training on Organization
and Functioning of Banking Sector 63,970.97 0.00 63,970.97
RAMP/CS/25 Specialized Training on Organization
and Functioning of Insurance Sector 55,945.86 0.00 55,945.86
RAMP/8 E-audit licenses 668,676.04 668,676.04
SC2: Application software 4,963,184.70 1,608,526.35 6,571,711.05
RAMP/CS/I- Project definition, integration and
implementation 4,963,184.70 1,608,526.35 6,571,711.05
SC3: IT infrastructure & implementation 35,781,585.07 2,231,242.26 38,012,827.33
RAMP/1-WS Workstations, monitors and
multifunctional printer 9,856,532.09 0.00 9,856,532.09
RAMP/1-SR - Hardware, software & tr. for primary,
secondary centre and data warehouse 9,664,303.05 114,463.79 9,778,766.84
RAMP/4 - Network improvement for datacenters (in
2 lots) 16,260,749.93 2,116,778.47 18,377,528.40
Component 3: Taxpayer Services and Corporate
Communication 7,371,144.08 906,670.72 8,277,814.80
SC 1: Taxpayer Services 3,057,136.73 585,569.12 3,642,705.85
RAMP/CS/15 Develop and implement New
Taxpayer Service Concept 3,057,136.73 585,569.12 3,642,705.85
SC2: Corporate Communication 4,314,007.35 321,101.60 4,635,108.95
RAMP/CS/17 - Annual surveys 3,144,492.61 321,101.60 3,465,594.21
RAMP/CS/16 Design Communication Strategy and
Develop Public Relations Skills 1,169,514.74 0.00 1,169,514.74
Component 4: Project Coordination and
Management 4,297,517.48 845,498.75 5,143,016.23
SC1: Project Management Unit 4,297,517.48 845,498.75 5,143,016.23
RAMP/CS/ 20 procurement adviser 1,227,308.44 234,624.75 1,461,933.19
RAMP/CS/ 21 IT procurement adviser 1,571,105.55 488,645.03 2,059,750.58
RAMP/CS/ 22 translation services 191,522.74 34,596.01 226,118.75
RAMP/16 training 77,911.16 0.00 77,911.16
RAMP/18 operational costs 12,704.98 16,473.84 29,178.82
RAMP/18 operational costs bank charges 33,944.48 6,433.52 40,378.00
RAMP/20 training project management 55,220.72 0.00 55,220.72
RAMP/21 training PMU 111,547.24 38,853.45 150,400.69
RAMP/9 licenses project management 40,498.28 0.00 40,498.28
RAMP/CS/23 financial audit 49,886.67 25,872.15 75,758.82
13
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
RAMP/22 training project management 54,153.08 0.00 54,153.08
RAMP/CS/27 Revenue administration consultant 438,534.78 0.00 438,534.78
RAMP/CS/26 Information Technology Consultant 433,172.97 0.00 433,172.97
Other expenses 6.39 0.00 6.39
SC2: Change Management
Total Project Expenditure - Project Funds 65,353,462.65 12,001,835.50 77,355,298.15
2.2 Project expenditure by category
Expenditures for
Cumulative as the year ended as Cumulative as
Category at 31 Dec 2016 at 31 Dec 2017 at 31 Dec 2017
RON RON RON
(1) Goods, non-consulting services,
consultants' services, including audit,
training and operating costs of the Project 65,353,462.65 12,001,835.50 77,355,298.15
14
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
3. SUMMARY OF STATEMENTS OF EXPENDITURES
During 2017 the below withdrawal applications were submitted,
of which
Withdrawal Total amount claimed amount
Application (EUR) claimed under
SOE(EUR)
14 534,671.82 534,671.82 24.01.2017 902.13
15 525,219.64 525,219.64 10.03.2017 77.16
16 497,721.62 497,721.62 14.07.2017 126,928.19
17 625,441.78 625,441.78 25.08.2017 51,668.28
18 412,349.57 412,349.57 05.10.2017 24,836.92
Total 2017 2,595,404.43 2,595,404.43 204,412.68
4. FINANCIAL STATEMENT OF THE LOAN
4.1 Total disbursements as at 31 December 2017
Amount
EUR
As at 8 May 2013 0
During 2013 0
As at 31 Dec 2013 0
During 2014 0
As at 31 Dec 2014 0
During 2015 7,726,783.02
As at 31 Dec 2015 7,726,783.02
During 2016 6,370,467.09
As at 31 Dec 2016 14,097,250.11
During 2017 2,595,404.43
As at 31 Dec 2017 16,692,654.54
Total disbursements 16,692,654.54
15
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
4.2 TBRD payments during the period 1 Jan 2017- 31 Dec 2017
Withdrawal Beneficiary Amount
application name Type Ccy claimed Category Ccy Amount paid Value date
14 MOPF Reimbursement EUR 534,671.82 1 EUR 534,671.82 24.01.2017
15 MOPF Reimbursement EUR 525,219.64 1 EUR 525,219.64 10.03.2017
16 MOPF Reimbursement EUR 497,721.62 1 EUR 497,721.62 14.07.2017
17 MOPF Reimbursement EUR 625,441.78 1 EUR 625,441.78 25.08.2017
18 MOPF Reimbursement EUR 412,349.57 1 EUR 412,349.57 05.10.2017
2,595,404.43 2,595,404.43
5. BUDGET REALIZATION
31.12.2016 31.12.2016 31.12.2016 31.12.2017 31.12.2017 31.12.2017
Component/De Allocated per Accumulated Deviation Budget Accumulated Deviation Budget
scription component as to date EUR EUR realization to date EUR EUR realization
per PAD EUR (%) (%)
I Component 1:
Institutional
Development 6,860,000 1,605,465 5.254,535 23.40% 2,750,943 4,109,057 40.10%
Component 2:
Increasing
Operational
Effectiveness
and Efficiency 57,700,000 10,422,782 47,277,218 18.06% 11,519,868 46,180,132 19.97%
j Component 3:
Taxpayer |
Services and
Corporate
Communication 2,920,000 1,642,359 1,277,641 56.25% 1,839,215 1,080,785 62.99%
Component 4:
Project
Coordination
and
Management 2,520,000 961,316 1,558,684 38.15% 1,146,069 1,373,931 45.48%
Total Project
Expenditure -
Project Funds 70,000,000 14,631,922 55,368,078 20.90% 17,256,095 52,743,905 24.65%
The total budget realization up to 31 December 2017 is 24.65%.
6. PROJECT COMMITMENTS
Project commitments as at 31 December 2017 are stated below:
16
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National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
7. ACCOUNTING POLICIES AND RECORDS
Basisfor preparation of special purpose financial statements
The special purpose project's financial statements are prepared in local currency (RON).
Therefore, the inter-banking exchange rate of the Romanian Commercial Bank was used for
payments made in foreign currency.
The accounting records of the project are maintained by the PMU in accordance with the accrual
basis of accounting in compliance with the Operational Manual approved by the WB.
The Project Financial Statements are prepared for complying with the Loan requirements and with
the appropriate World Bank guidelines.
Eligible categories and expenditures
Eligible expenditures mean expenditures in respect of the reasonable cost of goods, consultant's
services including audit, non-consulting services, training and operating costs required for the
Project and to be financed out of proceeds of the Loan allocated to the eligible Category in
accordance with the Loan Agreement.
Funding
The sources of funds identified for Project implementation are the external sources, granted by the
WB through the Loan.
External Contribution from the World Bank Loan:
The Government of Romania will provide initial advances for the Project implementation that will
be further recovered from the WB Loan, which represents the ultimate financial source for the
Project implementation support. The WB funds will cover all eligible expenditures and will be
accessed according to the Loan Agreement provisions.
Government of Romania Con tribu tion from budgetaryfunds:
The Government of Romania will advance all the funds for the part of the Project financed from the
WB, funds that will be further recovered in full from the Loan proceeds.
Contributionfroin general budgetary allocations and Implementation Agencies' ovvn sources:
Within Project activities, NAFA could also provide funds, when necessary, from their own budgets
to cover some implementation costs, non-eligible for financing from the Project funds. Also, NAFA
contribution will cover the salaries of the PMU staff.
According to Public Debt Law the loan will be recorded by the Ministry of Public Finance.
The financial statements will include only the amounts paid for the Project until the reporting date.
Use offunds
Using of funds represents the amounts paid for the purpose of the Project through the National
Agency for Fiscal Administration.
22
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
Conversion of amounts paid to Loan currency (EUR) for reimbursement purposes:
For payments in local currency the National Bank of Romania exchange rate at the date of payment
is used.
For payments in foreign currencies (other than the Loan currency) the inter-banking exchange rate
of the Romanian Commercial Bank at the date of purchase of the respective foreign currency is
used. The resulting amount is further converted to the Loan currency (EUR) at the National
Bank of Romania exchange rate at the date of payment.
Accounting system
The accounting system is established according to the Accounting Law no. 82/1991 republished,
with subsequent alterations and completions and to the Accounting Plan approved by Order of the
Minister of Public Finance no. 1917/2005. Therefore, the payments in foreign currencies to foreign
contractors are converted in local currency using the exchange rate of the National Bank of Romania
on the date of the payment.
8. STATEMENT OF TREASURY ACCOUNT
Treasury Account
Period: year 2017
Account no. : RO20TREZ23A510103650100X
Treasury: A.T.C.P.M.B.
Loan: 82610 RO
Currency : RON
Year 2017
RON
Balance as at 1 January 0.00
Cash receipts 12,001,835.50
Total cash receipts 12,001,835.50
Payments from treasury account
Payments made in the reporting period 12,001,835.50
Total payments from treasury account 12,001,835.50
Balance as at 31 December 0.00
9.LEGISLATION AND FISCAL ENVIRONMENT IN ROMANIA
The legislation and fiscal environment in Romania and their implementation into practice change
frequently and are subject to different interpretations by various Ministries of the Government. Over
recent years, Romania has undergone substantial legal and economic changes.
Due to the current situation determined by the internal and international financial crisis there is an
uncertainty with regard to the future legislative policy of the Romanian Government and its impact
on the evolution of the National Agency for Fiscal Administration.
23
National Agency for Fiscal Administration
Loan (8261 - RO) for Revenue Administration Modernization Project - RAMP
For the year ended 31 December 2017
Therefore, it is not possible to estimate what changes may occur or the resulting effect of any such
changes on the Project development or future results of its development.
10. PROJECT FINANCIAL STATEMENTS PRESENTATION
The special-purpose Project Financial Statements were prepared for complying with the Loan
requirements and with the appropriate World Bank guidelines.
11. SUBSEQUENT EVENTS
The Minister of Public Finance attended the April 20-21, 2018 Spring World Meeting of the World
Bank Group and the International Monetary Fund in Washington, USA. During the discussion, the
current portfolio of on going projects financed by the Bank in Romania, including the 8261-RO
Loan Agreement on ANAF Modernization, and the continuation of this Project in a restructured
form were analyzed. According to the address transmitted by the World Bank (NAFA registration
no. RAMP 9660/14.05.2018), the Bank's representatives will perform a visit to Romania in the
period 5- 8 June, 2018 for this restructuring
During period January - May 2018 the following withdrawal application was submitted:
Withdrawal Beneficiary Type Ccy Amount Amount Value date
. TypeuCcyCategory Ccy palidat
application name claimed paid
WA no 19 MOFP Reimbursement EUR 563,440.99 1 EUR 563,440.99 23-Jan-18
Daniela M no Adina lonita
RAMP Pr e l anager RAMP Financial Manager
IDate44N2
24